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HUMMER Sale Nixed By China; GM Gets New Offers? Page 2

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2010 Hummer H3T

Of course, the bigger story in all this may be that China seems VERY serious about going green. That should please environmentalists, given China's abysmal record on pollution. It should also please eco-car enthusiasts: with China's robust economy and auto market, this could speed the deployment of hybrids and EVs. Ironically, the conservative country that may lose Google over censorship concerns may also become the world leader in a new, green economy.

[TheCarConnection, with information from BusinessWeek, Automotive News]

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DETROIT General Motors today announced that Sichuan Tengzhong Heavy Industrial Machines Co., Ltd. (Tengzhong) was unable to complete the acquisition of HUMMER.  As a result, GM will begin the orderly wind-down of the HUMMER operations.

“One year ago, General Motors announced that we were going to divest HUMMER, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward.  We have since considered a number of possibilities for HUMMER along the way, and we are disappointed that the deal with Tengzhong could not be completed," said John Smith GM vice president of corporate planning and alliances. "GM will now work closely with HUMMER employees, dealers and suppliers to wind down the business in an orderly and responsible manner." 

GM will continue to honor HUMMER warranties, while providing service support and spare parts to current HUMMER owners around the world.


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Comments (2)
  1. Just because the Chinese government is not transparent doesn't mean outcome #3 is a "distinct possibility". In fact, since they are promoting green vehicles then by publicly blocking the Hummer deal they'd be sending a strong message to car manufacturers of what the government wants; this analysis is amateurish at best.
     
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  2. @smh: I'm sorry, maybe I need more coffee, but I don't follow your logic. I wasn't saying that outcome #3 was likely BECAUSE the Chinese government lacks transparency. I was saying that of the three outcomes, #3 was the most viable one. China's oblique communications system didn't CAUSE the rejection; it simply explained why the negotiations had dragged on so long with no official word from Tengzhong or GM, who were likely trying to call in some last-minute favors to get Beijing to reconsider.
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    I agree that China is sending a message to automakers, but what that message is remains vague and pretty diluted. IMHO, it's not a "strong message" at all. If China aims to become a true economic powerhouse and innovator, it's going to have to do better at encouraging innovation, relaxing censorship, and being more open across the board. Otherwise, the central government will continue throwing money at growth programs until China becomes a failed, bankrupt state like its former peer, the USSR.
     
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